Federal Trade Commission (FTC) lawyers have tackled Facebook owner Meta Platforms in a California district court over the proposed acquisition of virtual reality (VR) fitness app developer Within.
Accusing the Instagram owner of trying to buy itself a dominant position in, and ultimately monopolise, the market for VR fitness apps, a trial has begun that will see the FTC try to block the deal.
With past deals to buy Instagram and WhatsApp still being scrutinised by the FTC, lawyer Abby Dennis suggested Meta “could have chosen to use all of its vast resources and capabilities to build its own dedicated VR fitness app”.
Through the trial, the FTC is looking to break what it sees as a trend in Meta buying would-be rivals while they are still up and coming.
Playing down the accusations, Meta lawyers moved to defend the company’s plans to enter the VR fitness market, which included a proposed partnership with Peloton, suggesting the FTC underestimated competition.
Meta chief executive and founder Mark Zuckerberg is expected to appear as a witness.